August 29, 2011
In what has become a familiar theme, the Needham real estate market continues its steady performance heading into the historically strong Spring market. Comparing MLS sales data from the last half (final six months) of 2009 to 2010, the average sales price was up from approximately $815,000 to $835,000. The total market volume increased slightly with 127 sales in the second half of 2010, versus 125 sales over the same period in 2009. The average days on market remained relatively stable at 95.
The most active grouping in Needham was the $500,000 – $700,000 price bracket with 48 homes selling in the last half of the year; this is indicative of continued demand in the “starter” home market – if you consider that the starter market has now been pushed over the $600,000 barrier. There is a continued lack of inventory in Needham for homes priced over $700,000, with only 26 homes selling in the $700,000 to $1,000,000 price range. The upper end of the market and new construction segment remain active in Needham with 25 homes selling from $1,000,000 to $1,500,000. There were also four Needham homes that sold in the $2,000,000 – $2,500,000 price range, which is an increase from only two at the end of 2009. If you are interested, please visit our Needham Real Estate page for additional sales data.
Needham’s current housing inventory remains relatively limited, with 86 homes now on the market for sale. This is approximately a four month supply based on last year’s absorption patterns. The average listing price in Needham is nearly $1,250,000, which suggests that the market remains top heavy with new construction and higher end homes dominating the action. On the other hand, there are several overpriced homes languishing on the market, which has pushed the average days on market to nearly 180.
Overall, the Needham real estate market continues to defy the national housing trend. There is continued growth in home values and the balance of supply and demand remains in equilibrium. The Spring market in Needham, as always, will be interesting as current buyers and sellers sitting on the sidelines will likely begin to enter the market once the weather starts to turn.